Question
Sales mix and break-even sales Data related to the expected sales of laptops and tablets for Tech Products Inc. for the current year, which is
Sales mix and break-even sales
Data related to the expected sales of laptops and tablets for Tech Products Inc. for the current year, which is typical of recent years, are as follows:
Products | Unit Selling Price | Unit Variable Cost | Sales Mix |
---|---|---|---|
Laptops | $1,000 | $500 | 40% |
Tablets | 600 | 300 | 60% |
The estimated fixed costs for the current year are $1,596,000.
Required:
1. Determine the estimated units of sales of the overall company product, M, necessary to reach the break-even point for the current year. fill in the blank 1 of 1 units
2. Based on the break-even sales (units) in part (1), determine the unit sales of both laptops and tablets for the current year. Laptops fill in the blank 1 of 2 units Tablets fill in the blank 2 of 2 units
3. Assume that the sales mix was 60% laptops and 40% tablets. Compare the break-even point with that in part (1). Why is it so different? fill in the blank 1 of 4 units The break-even point is fill in the blank 2 of 4
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started